AN EXTRA £126m has been pledged to help businesses hit by the foot-and-mouth crisis .

Culture Secretary Chris Smith made £6m available to the English Tourism Council and the British Tourism Board to promote the message that Britain is open for business.

Chris Smith said: ''The British tourist industry has made it clear that the single thing they need most is custom. This means getting the situation in the countryside back to normal as quickly as possible in the areas affected. This is the Government's top priority."

In addition, an extra £120m has been made available to the Small Firms Loan Guarantee Scheme (SFGLS) to provide loans of up to £250,000 to tourism, retail and service industries.

The scheme will provide an 85 per cent guarantee on loans of up to £250,000 and 70 per cent on loans up to £100,000

Capital payment breaks and the time period in which to pay back loans have also been increased from 2 to 3 years and 10 to 11 years respectively. These loan offers will be available until December 2001 when a review is likely.

Trade and Industry Secretary Stephen Byers said: ''There are no quick fixes, but we must and we will do all we can to alleviate some of the problems that businesses across the country are facing now.

''Making it easier for firms to get financial support will make a significant contribution towards helping those businesses most badly affected at this difficult time."